Twitter: warns of headwinds, shares dive
(CercleFinance.com) - Twitter shares opened weaker on Thursday as concerns over the group's earnings and advertising revenue weighed on investor sentiment.
In its third-quarter report, the social media company said that it encountered a number of "unexpected headwinds" in its ads business over the quarter.
Quarterly revenue rose by just 9% to 824 million dollars, impacted by revenue product issues and greater-than-expected seasonality, the San Francisco-based company said.
As a result, operating income fell to 44 million dollars, compared to 92 million dollars a year ago, reflecting lower-than-expected revenue and no significant changes to ongoing investments, the group said.
Note that its costs and expenses grew by 17% to 780 million dollars over the quarter, due to headcount growth and other strategic investments.
These soaring costs scared investors, especially as Twitter expects lingering headwinds to continue to weigh on the performance of its advertising business in the near term.
The shares dived 18% at 31.9 dollars after these comments.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
In its third-quarter report, the social media company said that it encountered a number of "unexpected headwinds" in its ads business over the quarter.
Quarterly revenue rose by just 9% to 824 million dollars, impacted by revenue product issues and greater-than-expected seasonality, the San Francisco-based company said.
As a result, operating income fell to 44 million dollars, compared to 92 million dollars a year ago, reflecting lower-than-expected revenue and no significant changes to ongoing investments, the group said.
Note that its costs and expenses grew by 17% to 780 million dollars over the quarter, due to headcount growth and other strategic investments.
These soaring costs scared investors, especially as Twitter expects lingering headwinds to continue to weigh on the performance of its advertising business in the near term.
The shares dived 18% at 31.9 dollars after these comments.
Copyright (c) 2019 CercleFinance.com. All rights reserved.